Leading discount retailer, Ross Stores (ROST), has been steadily declining since early June. The stock peaked out at $104.93 a share after tagging it’s 200-day moving average. Since that high pivot, the shares have retreated down to the $80.00 area. The stock is now trading below it’s important 50-day moving average. This is usually an indication of a weak technical chart position and potential lower prices ahead for the stock.
Traders and investors must now watch the $75.00 level for major chart support. This important support area is where the stock has a major retrace level from the March lows to the June top. It is also a level where the stock was defended in early April 2020. This is an area where the institutional crowd should sponsor the stock. I will be looking for a long side opportunity in ROST stock at this key level.